The Raw Steels Monthly Metals Index (MMI) increased by 5.4% this month, as U.S. steel prices continued to rise last month.
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U.S. and Chinese prices relation
U.S. steel prices continued to increase in October for the third consecutive month.
HRC, CRC, HDG and plate prices increased by 15.4%, 10.0%, 9.0% and 5.3%, respectively. As demand recovers, so have prices.
Wire rod, however, was the only form of steel that did not increase in price this month, as it instead remained flat.
In contrast, Chinese HRC, CRC and plate prices increased around 2% in October. Meanwhile, HDG prices remained flat throughout the month. For the second month,
U.S. prices surpassed Chinese HRC, CRC and HDG prices. No price arbitrage existed for Chinese buyers, as local prices were lower than imported prices. Chinese prices had a four-month uptrend before prices flattened. On the other hand, U.S. prices started their uptrend approximately 2.5 months ago.
For the past two years, Chinese prices have led U.S. prices. Will that relationship mean U.S. prices will flatten within the next month and half?
Domestic demand increases, supports U.S. steel prices
Steel demand in the U.S. seems to be getting stronger.
As we have reported for a few months now, U.S. automotive production is on the rise.